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FCA sends customer-facing MMR leaflets to lenders – exclusive

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  • 03/04/2014
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FCA sends customer-facing MMR leaflets to lenders – exclusive
The Financial Conduct Authority is releasing the first batch of consumer facing Mortgage Market Review leaflets through mortgage lenders today.

Mortgage Solutions can reveal that the leaflet will inform customers where they can go to get advice and how the new affordability rules will affect them.

To see a copy of the leaflet click HERE.

Customers will be told that they need to submit evidence to prove their income and supply details of outgoings.

A statement is included to highlight that their affordability will be checked against future rate rises.

A comprehensive list of outgoings is included within the leaflet to remind customers of the expenses they need to include.

And the leaflet explains that any known changes in their income and outgoings must be disclosed to lenders if it means they will have less to spend on their mortgage payments.

Customers are informed that when they first meet a mortgage adviser they have to tell them what their charges are, whether they get paid and if there are any limits to to the range of mortgage they can recommend.

The execution-only route is explained and the implications of not taking advice such as the right to complain about the suitability of the mortgage.

The regulator intends to distribute 500,000 leaflets in total. 

Industry figures at the Mortgage Advice Bureau conference earlier this year criticised the Money Advice Service for failing to educate consumers about the changes.

It was feared that consumers were being left in the dark over delays they could face and the additional information they would be expected to submit once the new rules came into place.

 

 

 

 

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